Vasco Data stock price fell as the company posted its Q3 results, which were below analysts’ expectations. The net income for the quarter was $5.9 million, or 15 cents per share, compared to $3.3 million, or 9 cents per share last year. However, the company missed analysts’ consensus of 17 cents per share. Further, the revenue increased 60 percent to $30 million, but, analysts were expecting revenue of $31.3 million.
RBC Capital Markets downgraded its rating for Vasco Data from ‘Sector Perform’ to ‘Underperform’, citing that the stock is overpriced at the moment. Further, the company could be impacted by the prevailing slowdown in financial market spending as it has high exposure to the banking industry. This resulted in the decline in the company’s stock price in the early trading hours.
Banks and regulators have enforced more stringent online security measures in order to safeguard against hackers, phishers and other scammers. This will create opportunities for Vasco Data Security International, which offers security tokens to banks and also to small and medium-size companies. Analysts believe that the company has a significant growth potential in the US.
